MEXICO: Metlsa to buy ISE Automotive

Metalsa says it intends to acquire the global assets of ISE Automotive, a portfolio company of private equity fund Nordwind Capital, subject to standard conditions of completion, including regulatory and other approvals.

According to Metalsa, the purchase will strengthen its position as a global automotive supplier of structural components to light and commercial vehicle markets and further expand its customer base and global footprint into new regions.

Under the terms of the agreement, Metalsa, a subsidiary of Grupo Proeza, will assume control of eight ISE Automotive manufacturing facilities, including four in Germany and one each in China, South Africa, Turkey and the US.

ISE Automotive's product portfolio includes body and chassis modules, hinges and transmission components, as well as safety systems. In addition, Metalsa will acquire ISE Automotive engineering centres in Germany and Hungary.

Around 2,500 employees will join the Metalsa organisation as part of the arrangement.

Metalsa currently has 9,000 employees in Argentina, Australia, Brazil, Germany, India, Japan, Mexico, Thailand, Russia, the UK, US and Venezuela.

"This strategic acquisition is a logical next step for Grupo Proeza and Metalsa to reach its vision 2020 as we continue to diversify our product portfolio and expand our operations globally," said Grupo Proeza CEO, Enrique Zambrano.

"With the proposed acquisition, we will expand our manufacturing footprint supporting our customers in key automotive regions, while gaining technological capabilities to support additional business on a global scale."

Metalsa CEO, Leopoldo Cedillo, added he expected to receive "explicit support from current ISE customers to finalise the acquisition process."